Only POL price hike, more imports swell revenue: Rizvi

ISLAMABAD - Showing concerns over not broadening tax base of the country, Chairman Federal Board of Revenue (FBR) Mumtaz Haider Rizvi on Tuesday said that increase in revenue collection is only due to the higher prices of petroleum products and surge in imports, sources told The Nation.

Mumtaz Haider Rizvi, who took the charge of additional chairman FBR on Monday, has chaired the meeting of board-in-council of the FBR, which was called for evolving strategy for collecting the revenue collection target of Rs 1,952 billion during ongoing financial year 2011-12. Sources further told that Chairman FBR was not satisfied with the administrative measures taken in recent months, as he said in a meeting, “There in no role of the FBR in healthy revenue collection in the first seven months (July-January) of the ongoing financial year as all happened only due to increase in POL prices and surge in imports “.

He showed serious reservations over the steps taken to broaden the tax base and said that he wants revenue collection should increase on administrative measures instead of temporary measures that included increase in POL prices etc. He has directed the officials to bring concrete plan, which could broaden the tax base of the country that is lowest in the region.

Sources further informed that chairman FBR directed tax officials that he wants to achieve tax collection target at any cost. The meeting was informed that FBR has collected Rs 973 billion during the first seven months of the ongoing financial year while it has to further collect Rs 979 billion in the remaining five months to reach the tax collection target.

According to the sources, Chairman FBR also directed the officials to expedite process of bringing non-taxpayers into tax net, as FBR and NADRA had already traced out 7,00,000 such people who are enjoying luxury life but not paying any tax. Sources informed that board-in-council meeting would also be held today (Wednesday).